{"id":605,"date":"2013-04-05T10:55:54","date_gmt":"2013-04-05T17:55:54","guid":{"rendered":"http:\/\/privatemoneysource.com\/blog\/?p=605"},"modified":"2013-04-05T10:55:54","modified_gmt":"2013-04-05T17:55:54","slug":"loans-we-are-placing-example","status":"publish","type":"post","link":"https:\/\/privatemoneysource.com\/blog\/?p=605","title":{"rendered":"Loans we are placing – example"},"content":{"rendered":"

S. Clay Sparkman<\/p>\n

Every now and then I like to present one of the loans that we have placed or are in the process of placing, so that blog readers can see (a) the types of loans that we are placing, and (b) how we feel that loans should be presented. Keep in mind that this is only the summary. We put this on top of all of the relevant documentation and send it via e-mail in an Adobe file. This particular loan we just closed.<\/em><\/p>\n

Kristopher Gillmore<\/p>\n

Fairfield Financial Services, Inc<\/strong><\/p>\n

16055 SW Walker Road, #247, Beaverton OR 97006<\/p>\n

Phone (503) 319-7294 \/ Fax (503) 419-4219 \/ E-mail: gillmore@privatemoneysource.com<\/a><\/p>\n

<\/span><\/strong><\/p>\n

REAL ESTATE PROSPECTUS<\/span><\/strong><\/p>\n

<\/span><\/strong><\/p>\n

SECURED LOAN<\/span><\/strong><\/p>\n

Purchase and rehab of property in Salem, OR<\/p>\n

Loan Details<\/span><\/strong><\/p>\n

    \n
  1. Loan Amount: $107,500<\/li>\n
  2. Term: 12 Months<\/li>\n
  3. Interest Rate: 13%<\/li>\n
  4. Monthly Payments: $1,764.58 \u00a0Interest Only<\/li>\n
  5. Security:\u00a0 Deed of Trust in 1st Position security interest in real property located at 4369 Boulder Ave, Salem OR.<\/li>\n
  6. Construction Holdback:\u00a0 $22,000<\/li>\n
  7. Interest Reserve:\u00a0 $3,530 (3 months)<\/li>\n
  8. Projected Value by Borrower\u2019s Estimate based on CMA: $165,000<\/li>\n
  9. Projected LTV by Borrower\u2019s Estimate based on CMA:\u00a0 65%<\/li>\n<\/ol>\n

    Loan Overview<\/span><\/strong><\/p>\n

    Mr. xxx and Mr. yyy are the members of xxx, LLC, and will be personally guaranteeing this loan.\u00a0 Mr. xxx is a licensed contractor and is the owner of his own construction company, yyy, LLC.\u00a0 He is very experienced in rehabbing houses and will be doing the work himself.\u00a0 His resume has been provided.\u00a0 To summarize the relationship between Mr. xxx and Mr. yyy: Mr yyyis the numbers\/financial guy with good credit\/income and Mr. xxx is the contractor.<\/p>\n

    This is the first loan that we\u2019ve done with Mr. xxx and Mr. yyy, but their ultimate goal is to become a solid repeat borrower with the opportunity for us to do more loans in the future.<\/p>\n

    The borrowers are purchasing this property for $88,400, and are anticipating $22,000 in repairs.\u00a0 Essentially, the entire interior will be getting a face lift, with new paint, drywall (where required) flooring, appliances, with funds also allocated for the replacement of the roof and some landscaping.\u00a0 The budget for repairs has been provided for your review.\u00a0 They are putting approximately $16,000 down, which includes a 3 month interest reserve.<\/p>\n

    Property Info \/ Valuation<\/span><\/strong><\/p>\n

    The property has 4 bedrooms, 2.5 baths, and is currently 1,900+ Square feet, counting the garage that was converted into living space.\u00a0 The conversion was not permitted, and the work on that conversion was minimal (carpet on the concrete, no heat, etc\u2026), so that space will be converted back to a garage.\u00a0 After that space is converted back to a garage, the square footage should be approx. 1,600 + some storage space in the upstairs.\u00a0 The house was built in 1970 and sits on a 6,565 sf lot with a fenced back yard.\u00a0 Photos of the property have been provided.<\/p>\n

    The borrowers have provided a CMA with both sold comps and active listings.\u00a0 Based on the avg. $\/Square foot, the borrowers are estimating an ARV of approximately $165,000<\/p>\n

    This CMA has been provided for your review.<\/p>\n

    Income<\/span><\/strong><\/p>\n

    A signed 1003 has been provided.\u00a0 Mr. yyy is stating a monthly income of $8,125, and a net worth of $191,180.\u00a0 Mr. xxx has stated an annual income of $60,000, but the details of his assets and liabilities are pending (and will be provided presently).<\/p>\n

    Credit<\/span><\/strong><\/p>\n

    Mr. yyy has a mid-credit score of 679, with no accounts past due, and no accounts with any late payments.<\/p>\n

    Mr. xxx\u2019s mid-credit score is 485.\u00a0 He has reported that his credit is deteriorated because of medical expenses that he incurred in 2010.\u00a0 He has not yet been able to catch up with those bills.<\/p>\n

    Note \u2013 Initially Mr. yyy was going to guarantee this loan alone, because he\u2019s the only with decent financials.\u00a0 However, I told them that it would be more beneficial to have a weak borrower on the hook as well.\u00a0 Mr. xxx\u2019s personal financials and credit are not good, but his additional personal guarantee certainly doesn\u2019t hurt.<\/p>\n

    – Clay (clay@privatemoneysource.com, 503-476-2909 or 800-971-1858)<\/p>\n

    Clay is Vice President of Fairfield Financial, a primary source for private money loans since 1964.\u00a0 Fairfield works with a broad range of private money investors, in a broker capacity, finding, underwriting, presenting, closing, servicing, and when necessary, assisting in the workout of difficult loans.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

    S. Clay Sparkman Every now and then I like to present one of the loans that we have placed or are in the process of placing, so that blog readers can see (a) the types of loans that we are placing, and (b) how we feel that loans should be presented. Keep in mind that […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_s2mail":""},"categories":[5,9,13,19,22],"tags":[40,41,42,43,44,49,50,51,58,59,60],"_links":{"self":[{"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/605"}],"collection":[{"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=605"}],"version-history":[{"count":0,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/605\/revisions"}],"wp:attachment":[{"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=605"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=605"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=605"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}